What is the Non-Compliance Fee for a second violation for a Beverly Anns Cookie franchisee?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Misappropriated Brand Manual Fee(7) | Will vary under the circumstances | On demand | Our "Brand Manual" contains valuable intellectual property and trade secrets. Each franchisee will get one copy of the Brand Manual. If you lose, give away, make unauthorized copies, fail to return or otherwise misappropriate all or some of the Brand Manual, you must pay us liquidated damages according to the formula listed in Note 6 to offset the damages that we will incur as a result of this misappropriation. |
| Non-Compliance Fee | $1,000 for the first violation; $5,000 if violation is not corrected within 30 days; and $5,000 for the second violation. | As incurred | This fee is assessed if we notify you that you are failing to follow our System Standards (defined in Item 8), failing to use the approved or required suppliers or products, failing to comply with the provisions of the Franchise Agreement or failing to follow the provisions of our Brand Manual. This fee is in addition to any and all remedies that we have available under the Franchise Agreement. If you commit three or more violations in a single year, we may terminate your Franchise A |
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a franchisee will be assessed a Non-Compliance Fee of $5,000 for a second violation. This fee is incurred if Beverly Anns Cookie notifies the franchisee that they are failing to follow the System Standards, failing to use approved or required suppliers or products, failing to comply with the provisions of the Franchise Agreement, or failing to follow the provisions of the Brand Manual.
This fee is in addition to any other remedies that Beverly Anns Cookie may pursue under the Franchise Agreement. It is important to note that if a franchisee commits three or more violations in a single year, Beverly Anns Cookie has the right to terminate the Franchise Agreement.
Franchisees should ensure they understand and adhere to all System Standards, approved supplier requirements, Franchise Agreement terms, and Brand Manual guidelines to avoid incurring Non-Compliance Fees and potential termination of their franchise agreement. Paying attention to these details can help maintain a positive relationship with Beverly Anns Cookie and protect the franchisee's investment.